SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
For the month of March 31, 1999
ICTS International N.V.
(Transition of registrant's name into English)
Biesbosch 225, 1181 JC 1185 ZH Amstelveen, The Netherlands
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F. Form 20-F x Form 40-F
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes ______ No X
[If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3- 2(b):82-_______]
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CONDENSED CONSOLIDATED BALANCE SHEET
(US $ in thousands)
December 31, March 31,
1998 1999
-------------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents................................................$11,273......... $6,933
Time deposits and Marketable Securities....................................5,300 7,931
Accounts receivable.......................................................10,454... ......16,166
Other current assets.......................................................1,965.... ..... 2,216
Short-term loans and current maturities....................................1,080 881
-------------------------------
Total current assets 30,072 34,127
INVESTMENTS:
Investment in affiliates...................................................1,156......... 1,041
Other investment .........................................................10,276......... 5,254
-------------------------------
11,432 6,295
PROPERTY AND EQUIPMENT:
Cost.......................................................................3,771..........4,193
Less- accumulated depreciation.............................................1,817. 1,863
-------------------------------
1,954 2,330
LONG-TERM RECEIVABLE,
net of discount and current maturities.......................................176 162
GOODWILL, net of accumulated amortization of $ 1,528 in 1999
and $ 1,435 in 1998........................................................8,582........ 14,421
DEFERRED TAXES .................................................................1,367.. 1,349
OTHER ASSETS AND DEFERRED CHARGES................................ 249 254
-------------------------------
10,198 16,024
-------------------------------
Total assets.........................................................$53,832.........$58,938
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank debt......................................................$3,663..........$2,433
Current maturities of long-term debt.........................................562 680
Account payable-trade......................................................1,421...... 1,315
Accrued expenses and other liabilities.....................................9,804 12,770
-------------------------------
Total current liabilities.............................................15,450....... 17,198
LONG-TERM DEBT, net of current maturities................................... 6,174 11,312
DEFERRED TAXES ................................................................... - 793
ACCRUED SEVERANCE PAY......................................................... 1,309 1,284
-------------------------------
Total long-term liabilities.......................................... 7,483.... 13,389
-------------------------------
Minority Interest - (312)
SHAREHOLDERS' EQUITY Share capital:
Common shares, par value-NLG 1 per share,
17,000,000 shares authorized; 6,569,480 outstanding
shares in 1999 and 1998...................................................3,564.... 3,564
Additional paid-in capital................................................19,090....... 19,090
Retained earnings.........................................................12,435......... 12,603
Cumulative translation adjustments (2,968) (5,171)
-------------------------------
32,121 30,086
Treasury stock 247,400 and 209,400 common shares,
at cost, in 1999 and 1998 respectivly (1,222) (1,423)
-------------------------------
30,899 28,663
-------------------------------
Total liabilities and shareholders' equity...........................$53,832 $58,938
===============================
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(US $ in thousands, except share and per share data)
Three monthes ended
31 Mar 98 31 Mar 99
Revenues......................................................................$13,578.........$28,646
Cost of revenues...............................................................11,514..........25,446
--------------------------------
Gross profit....................................................................2,064...........3,200
Amortization of goodwill..............................................117........ 206
Selling, general and administrative expenses........................1,707 2,612
--------------------------------
Operating income .................................................................240.............382
Interest income...................................................................313.......... 330
Interest expense.................................................................(173)......... (330)
Exchange rate differences 489 339
Other income (expense), net.........................................................- (32)
--------------------------------
Income before income taxes and equity in results of affiliates... 869 689
Income taxes (388) (441)
--------------------------------
Income before equity in results of affiliates................................ 481 248
Cumulative effect of a change in accounting principle - (115)
Minority Interest - 7
Equity in results of affiliates, net...............................................31........ 28
--------------------------------
Net income........................................................................512.............168
================================
Other comprehensive loss:
Translation adjustments (885) (2,457)
Unrealized gains on marketable securities 82 254
--------------------------------
Other comprehensive loss (803) (2,203)
Comprehensive income (291) (2,035)
================================
Earning per Common Share - basic 0.08 0.03
================================
Earning per Common Share - assuming dilution 0.08 0.03
================================
Weighted average of common shares
outstanding...........................................................6,569,480.......6,336,613
Diluted...............................................................6,617,167.......6,336,613
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(US $ in thousands)
Three monthes ended
31 Mar 98 31 Mar 99
CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the period..............................................................$512..........$168
Adjustments to reconcile net income to net cash
Provided by operating activities:
Depreciation and amortization..........................................................199.......... 375
Deferred income taxes..................................................................119..............6
Increase in accrued severance pay.......................................................74........... 71
Realized gain on marketable securities and interest and exchange rate income
on short-term loans and other investments (235) (454)
Minority Interest - (7)
Equity in results of affiliates........................................................(31)......... (28)
Changes in assets and liabilities:
Accounts receivable....................................................................890.......... 770
Other current assets..................................................................(285).......... (66)
Accounts payable......................................................................(220)........ (212)
Accrued expenses and other liabilities............................................. ..(876).......... 714
---------------------------
Net cash provided by operating activities...................................................... ..147....... 1,337
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of time deposits and marketable securities.................................. (453)..... (2,800)
Proceeds from sale of short-term investments.........................................2,679.............-
Short-term loans -
Collection on short-term loans 65
Other investments (75) (105)
Purchase of equipment.................................................................(94)....... (210)
Acquisition net of cash acquired (divestitures, net of cash sold) (a) (38) 40
Proceeds from sale of investment in -
affiliates.........................................................................
Investment in affiliates (95) (30)
Collection on long-term receivable.....................................................-.....
Proceeds from sale of equipment.........................................................-.......... 17
Increase in other assets...............................................................(3).......... (2)
---------------------------
Net cash provided by (used in) investing activities..................................1,986...... (3,090)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchases of common stock.............................................................-...... (201)
Proceeds from long-term borrowings 54 579
Payments on long-term borrowings......................................................(105)....... (330)
Increase (decrease) in net borrowings under short-term bank facilities............... 87 (942)
---------------------------
Net cash provided by financing activities...............................................36....... (894)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATES ON CASH AND
CASH EQUIVALENTS......................................................................(495).....(1,693)
---------------------------
Increase (decrease) in cash and cash equivalents................................................1,674......(4,340)
---------------------------
Balance of cash and cash equivalents at beginning of period....................................13,699.. $11,273
---------------------------
Balance of cash and cash equivalents at end of $15,373 $6,933
period..................................................................................... ===========================
(Acquisition net of cash acquired (divestitures, net of cash sold) (a)
Assets and liabilities of a subsidiary at date of acquisition:
Working capital, excluding cash and cash (129) (4,450)
equivalents.......................................................................
Property, equipment, investments and other assets...............................(22).......(488)
Long-term liabilities 5,526
Defferd tax liabilities 1,036
---------------------------
(151) 1,624
Minority Interest - (324)
Increase (Decrease) of other investments 189 5,434
Excess of cost over fair value upon - (6,694)
acquisition................................................................
---------------------------
Cash paid for acquisitions, net of cash acquired 38 40
===========================
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CONSOLIDATED STATEMENTS OF
SHAREHOLDERS' EQUITY
(US $ in thousands)
Accumulated
Share capital Additional other
----------- -------------
Common shares Amount Paid in capitaRetained comprehensive Treasury stock Total
Earnings income (loss)
------------------------- ------------------------ -------------------------------------------
Balance at January 1, 1996 4,000,000 $ 2,063$ $ 431 $ 743 $ 709 $ 0 $ 3,946
Changes during 1996:
Initial Public Offering..............1,500,000 878 7,322 8,200
Second Public Offering...............1,065,000 621 11,311 11,932
Comprehensive Income:
Net income....................................... 6,764 6,764
Other comprehensive income:
Translation adjustments............... (769) (769)
------------
Comprehensive Income 5,995
----------- ----------- ---------- --------- -------------- ----------- ------------
Balance at December 31, 1996.......6,565,000 3,562 19,064 7,507 (60) 0 30,073
Changes during 1997:
Stock options exercised..................4,480 2 26 28
Comprehensive Income:
Net income...................................... 4,046 4,046
Other comprehensive income:
Translation adjustments............. (4,035) (4,035)
Unrealized gains on marketable securities.. 20 20
------------
Comprehensive Income 31
----------- ----------- ---------- --------- -------------- ----------- ------------
Balance at December 31, 1997.........6,569,480 3,564 19,090 11,553 (4,075) 0 30,132
Changes during 1998:
Common stock repurchased........... (209,400) (1,222) (1,222)
Comprehensive Income:
Net income...................................... 882 882
Other comprehensive income:
Translation adjustments............... 1,830 1,830
Unrealized losses on marketable securities.. (723) (723)
------------
Comprehensive Income 1,989
----------- ----------- ---------- --------- -------------- ----------- ------------
Balance at December 31, 1998.........6,360,080 $ 3,564$ 19,090 $ 12,435$ (2,968) $ (1,222) $ 30,899
Changes during 1999:
Common stock repurchased............ (42,300) (201) (201)
Comprehensive Income:
Net income...................................... 168 168
Other comprehensive income:
Translation adjustments............... (2,457) (2,457)
Unrealized losses on marketable securities.. 254 254
------------
Comprehensive Income (2,035)
----------- ----------- ---------- --------- -------------- ----------- ------------
Balance at March 31, 1999............6,317,780 $ 3,564 $ 19,090 $ 12,603 $ (5,171) $ (1,423) $ 28,663
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by
undersigning, thereunto duly authorized.
ICTS INTERNATIONAL N.V.
Date : May 12, 1999 By : /s/ Raanan Nir
Name : Raanan Nir
Title: Chief Financial Officer
